Used car deals: How to drive a bargain

As new cars are sold, used cars enter the market. But over the past few years, new-car sales fell off a cliff, and so did the number of used cars for sale. If you're in the market for a used car, you'll need to shop smarter to get a bargain. Our strategies will help you find the values and negotiate a good deal.

With gas prices on the rise again, the higher the fuel economy, the higher the markup. That means smaller vehicles, hybrids and even small crossovers are hot. Even so, there are more gas-sippers to choose from than there were when gas prices spiked in 2008 -- the number of hybrids alone has nearly doubled. And increased competition for small cars in the new-car market is helping to set a ceiling on used-car prices.

If you value space over fuel economy, it's likely you can find a good deal on a full-size car. Ditto for medium to large SUVs and crossovers. But note that you won't see the bargain-basement prices of 2008, when consumers rushed to dump their big SUVs. Manufacturers cut back on production, so there are fewer available now. Automakers heavily curtailed truck production, too. Prices for used full-size trucks are up 15 percent from last year, according to Joe Spina, senior manager of remarketing at Edmunds.com.

No matter what type of vehicle you're shopping for, a few tips may help you score a better deal. Mark Scott, of AutoTrader.com, recommends looking at models that were recently redesigned, such as the Honda Civic. If the used model doesn't look the same as the new model, prices are likely to be a bit lower. If you're shopping for a hybrid that has a gas-engine counterpart, shoot for a four- or five-year-old model; these hybrids tend to hold their value for the first three years and then fall off.

Check out used Toyotas, suggests Keith Griffin, who writes the guide to used cars at About.com. In J.D. Power's latest Vehicle Dependability Survey of three-year-old vehicles, Toyota scored the best of all the nonluxury brands. Just be sure that any recall issues are fixed. If a private seller hasn't had recall work done yet, you should be able to negotiate a lower price.

And don't ignore used rental cars. Most have logged a lot of miles, but the drivers are businesspeople over the age of 25, and the vehicles are well maintained by the rental companies. Rental vehicles for sale are typically just one year old, and they're often sold in the fall, when the new models arrive. Check rental websites, such as Enterprise and Hertz, for listings.